In today’s digital era, online transactions are no more optional, but a part of our daily life. Booking cab services, ordering groceries, shopping online, or learning a new course- we often need to do online transactions for multiple purposes. And with that, we frequently come across payment related issues such as declined cards, failed payments due to outdated cards, unsuccessful transactions due to other reasons etc. It becomes quite difficult to keep track of it or remain assured about what the exact status of the transaction was. For instance, often money gets deducted from your bank account during net banking even in case of unsuccessful payment and so on. To make this entire thing easier, dunning management is there.
No matter whether you are a businessman with an automated billing system or just an individual who often does online transactions, you must have the basic idea about dunning management to make your payments easier.
What Dunning Management Really Means?
Dunning management is basically the ability of an automated billing system or recurring billing system to manage the complications in case of a credit card decline or payment failure.
Let’s give an example, suppose you are running an OTT Service and some of your customers have chosen monthly billing frequency and submitted their required credit card details for automatic billing. Now, if any credit card gets declined during the recurring billing procedure, ‘dunning management’ feature will enable the billing system to handle the situation and take necessary steps.
Simply put, this feature of a billing system handles the failed payments and related complications if any, without creating additional overhead for you!
Why is Dunning Management Important for your Billing System?
Dunning management not only plays a vital role for the businesses with automated billing systems, but makes the billing experience much smoother for the customers as well!
Here we will walk you through the top solutions provided by a billing system equipped with dunning management-
Automatic Billing Retry
Payment failure can significantly impact the customers’ purchasing decisions. They may not retry later or even may not return to purchase again from your online platform. This in turn affects your overall business profitability.
But, dunning management makes this situation better by providing an automated payment retry solution. This in turn reduces the ‘dunning prices’. And for any SaaS or online businesses, lower dunning prices = higher revenue. You can choose the settings for this ‘payment retrying feature’ based on your billing software.
Use Case: Diego has a B2B SaaS business with online billing. And he wants to set-up automated payment retries for up to three times for any credit card. Diego can set the settings in his billing software accordingly. As a result, after any credit card failure, there will be upto three times automatic payment retry. And in case the payment is not processed even after the third automated try, the customer’s account will be suspended.
Also Read: Best Recurring Billing Softwares in 2021
Professional Email Communications for Declined Payments
Payment failure often acts like the biggest turn-off for the customers, especially if they remain clueless about the exact payment or order status after the payment failure. A well-crafted instant email or SMS notification can work wonders in this case so that your customers can have a clear idea about the payment status and there are higher chances of them purchasing again.
Example: For the e-commerce platform Amazon, if there is a transaction failure, the customers get email and SMS notifications updating them about the status such as – payment pending, payment failed etc. This surely improves the credibility of the online platform as well.
Analytics on Account States
Nowadays most of the online businesses have subscription-based models. But adopting a recurring billing system may not be enough unless it gives you the insights on the account states of various customers. As you know, declined payments or outdated card information can make your business growth sluggish. But how do you know about the exact stats? Well, dunning management includes this solution too! It gives you a clear picture of the account states of your subscribers no matter how large they are in the number!
Point to be Noted,
Dunning management is often an in-built feature for most of the top-rated automated billing systems! And you must go through the feature-packed solutions of a billing system before finalizing it for your business.
Muvi Billing is one of its kind of subscription billing software for websites & apps which not only promptly notifies customers about failed payments, but offers a range of exclusive solutions. Muvi Billing’s 40+ payment gateways, smart record keeping, analytics & insights, and carrier grade security are what make your business stand out from the competition.
Take a 14-day free trial of Muvi Billing today to understand better.